Global investments in the energy transition grew by 20 per cent between 2022 and 2024, reaching $2.4 trillion, with $807 billion directed towards renewable energy technologies, according to a new joint report by the International Renewable Energy Agency (IRENA) and the Climate Policy Initiative (CPI).
The report, titled “Global Landscape of Energy Transition Finance 2025,” reveals that 96 per cent of renewable energy investments went to the power sector, with solar PV hitting a record $554 billion in 2024, up 49 per cent. However, investment in factories producing solar, wind, battery, and hydrogen fell by 21 per cent to $102 billion.
Speaking on the report, IRENA Director-General Francesco La Camera emphasised the need for a faster pace, stating, “Funding for renewables is soaring but remains highly concentrated in the most advanced economies. As countries gather at COP30 to advance the ‘Baku to Belém Roadmap to 1.3 trillion,’ scaling finance for emerging and developing countries is essential to make the transition truly inclusive and global.”
La Camera pointed out that 90 per cent of investments remained concentrated in advanced economies and China, leaving emerging and developing countries behind. He called for smarter deployment of public funds to unlock private investment and emphasized the need for stronger multilateral cooperation and scaled-up climate finance.
“We need to fix the slit,” La Camera said, requiring $29-30 trillion in cumulative investment in renewables, grids, flexibility measures, energy efficiency, and conservation in the next five years to achieve the Paris Agreement goals.
The report notes that annual investments in renewables increased by only 7.3% in 2024, compared to 32 per cent in 2023, falling short of the required trajectory to achieve the UAE Consensus on renewable energy.
Investment in renewable power, grids, and battery storage exceeded fossil fuels investment in 2024. Battery factory investment nearly doubled to $74 billion, reflecting rising demand for storage in grids and electric vehicles (EVs).
China accounted for 80 per cent of global investment in manufacturing facilities for solar, wind, battery, and hydrogen technologies between 2018 and 2024.